JUDGE JUDY / Banks and Insurance – A Consumer PerspectiveCommentator: As we await Judge Judy’s arrival, let me set the stage for today’s program. Over the past few years the “walls” between the institutions of Banking, Insurance and Investment have come tumbling down.Today a bank, insurance agent or stockbroker can offer full financial services – banking, insurance and investment products to their customers. This is forcing these industries to redefine themselves. In the last year, federal laws were rewritten to facilitate this process. This has resulted in marketplace chaos – merger, acquisitions, joint ventures, marketing alliances, etc. This means that the traditional banks, agencies and stockbrokers who have enjoyed such a lucrative past are scrambling to assure the same advantages in the future. The driving force behind this change is not new legislation – it is competition. We are moving from a past of institutional control to a future “owned” by consumers. In yesterday’s world, Banks were protected by regulation – agencies and stockbrokers were saved by information control. With regulation and the sameness it creates, profits were fixed. With knowledge control – the sales process and the options it should provide to consumers – was channeled to assure that distributors benefited first and consumer satisfaction was second. The problem – the dilemma – the reason we are here today is simple. Technology, global competition and consumer sophistication, have on a near immediate basis, shifted control from providers to consumers. This creates great change – opportunities for the under served consumers of the past and peril for overly protected providers of yesterday. Consumers can now control their world of Financial Services. Institutional providers in an effort to regain and / or perpetuate their historic control and profits are alleging a commitment to the consumer. They have promised “user friendly, one stop and hassle free shopping.” The questions are, “has this expectation been met?” and “are consumer better off today?” Simply stated, today’s program creates the opportunity for Providers and Consumers to tell their story to Judge Judy and to have Judge Judy evaluate their concerns, opinions, responsibilities, etc. Bailiff: “All rise!” JUDGE JUDY: “Be seated…Now – Let’s get something straight right now. This hearing is going to be conducted in real time like things happen in the real world, not at the snail’s pace that has been the trade mark of you bankers and insurance guys. Each of you will get your chance to talk – tell me your name, your interest, the problems and opportunities in this New World of Financial Services and tell me fast. No bull – no puff, I want the facts, just the facts.” The providers will go first and the consumers will speak last. I can tell you, get used to this because in this New World consumers will always have the last word! Let’s get started – Whose here representing the stock brokers.” STOCKBROKER: “Your honor, I’m Edgar Zito Way with F. F. S. Before you ask about these names – it’s really EZ at FFS - Full Fee Services. I’ve helped my customers buy, sell, invest and churn, I mean learn about their investments. I’ve worked hard and done well. In the old days there were so few rich guys we had to work hard to find them. In the last decade or so, I’ve helped my customers make bunches of money. Now everyone wants to benefit from the skills of guys like me. When times start to look good, these bankers and agents want to get into my business. If that’s not bad enough, we’ve got this darn technology and e-trade system. It’s not fair, I work hard to do well, get close to my goals and now the game changes. It’s not fair. It’s not fair!” JUDGE JUDY: “Quit whining! Maybe FFS should stand for FAT FEE Sales. If the business was as difficult as you say and margins as thin as you suggest competitors wouldn’t be fighting to join you. If the value you claim to add – relationship,
knowledge and information, is as good as you say a stupid machine shouldn’t
replace you. I’d bet that you looked at the Y2K Bug as a market opportunity
– a savior from the threat of e-commerce. It didn’t happen so get over it! Next – give me the Insurance agent.” INSURANCE AGENT: “Judge Judy, I’m glad to be here. You certainly look good today – in fact, you’re more dynamic in person than you are on TV I ‘d like to … JUDGE JUDY: “Shut up – you may be selling but I’m not buying. Stick to the facts. Start over.” INSURANCE AGENT: “I’m Richard Guy, CPCU, CLU, ARM, PIT. I’m also known as Rich or Dick. I’m an independent agent. I represent the customer not one company. I want to get into the banking and investment business so I can help my customers even more. These other industries could use the consumer advocacy that I bring. I’ll tell you this – these old dinosaurs could learn a few things about sales and marketing, you know – relationships, from my colleagues and me. I’ve just completed a venture with my local bank. You wouldn’t believe it – it took them a year to make a decision to do this and now they expect me to make it work in one day. They just don’t understand. Now I can sympathize with EZ about this Internet and e-commerce stuff. Customers need me. They’re not smart enough to buy this product direct. You need to outlaw all this on-line shopping. You know, protect the customers from themselves. I could go on for hours, I can tell you…” JUDGE JUDY: “Shut up – I’m sure you could go on for hours, but not in this courtroom. I want to clarify some of the statements that you’ve made. For your information Mr. Rich Guy – consumers, like me, don’t see the same value in you that you claim to bring to me! Your comments about me not being smart enough to buy direct make me furious. I may need an agent because insurance companies are so inefficient and user hostile and the products that sell are written in legalese. You have kept from me the information I need to make sound decisions. The problem is not my intelligence, it’s your manipulation. As a consumer, I would gladly pay a fair price for the services of a person that helps me solve problems and manages the resources I need to maximize good and minimize bad in my life. Read my lips – I WANT LESS NOT MORE HASSLE IN MY LIFE. I question if, in the past, you’ve really represented me? Do you have a contract with those companies? Do you have a contract with me? Can you more easily afford to lose a company or one customer like me? Do you bring shelf products from those companies to sell to your customers or do you ask us what we want and then go to the companies and find a product that addresses these wants / needs. As for the Internet and e-commerce, I say thank God! People, like me have now been able to learn the truth. We now know what our options are, the real pricing differences and we’ll soon learn how much you make on each sale. This will change your behavior more than if I put glass doors on your bathroom. A wise old owl once told me that every policy sold will benefit someone. Some benefit the buyer and others benefit the seller. The Internet will assure that more buyers benefit. That’s good! Your complaints about banks I don’t want to hear. All of the providers of Financial Services are Bureaucratic Institutions. Y’all were all dumb, fat and happy. It’s over. You aren’t in control anymore. Get over it. Where’s the Banker. Get up here. Don’t keep me waiting like I’m in the teller’s line.” BANKER: “Your honor, I’m Anne L. Retentive, a lobbyist and attorney representing the banking industry. I’m…JUDGE JUDY: “Wait a minute – wait a minute, do my eyes deceive me? Did the ultimate Boy’s Club send a lady to represent them in front of me? I bet there are more women in this courtroom today then there are on the Boards of all banks in America.Another observation, I don’t see any “good old boys” in this room. I guess that’s because they’re all at Bank Board meetings. Let me guess, your notes start with you expressing concern about the burden of regulation. Save your breath – I don’t care. The Regulation all of you guys need to comply with is simply the WANTS and NEEDS of consumers – all of them!Now get started and remember Regulation – don’t go there!”
BANKER:
“Well if you overrule my discussion of regulation, you upset my plans. You
see in banking, scripts, rules, procedures and processes are all important.
We don’t like to have to change. Before I continue with my planned comments, let me address a remark made by the Insurance Agent – Dick. We may have taken a year to decide compared their one-day impulse but I can assure you it will take them more then a year to implement. As a bank we handle hundreds, if not thousands, of transactions every day and balance at 5 o’clock. With an agent, every transaction is an exercise in process and balancing is not even a hope, a possibility. Everything is a challenge. When it comes to process, I believe they confuse senseless with seamless. If we can’t be handle transactions better than agents, I’m not Anne L. Retentive. Then there is the issue of image and compensation. Bankers are about prestige, security, seniority, etc.. These agents – you know the used car type, want to come into our system – they’re so aggressive. They want us to turn over our customers so they can make more money than we do. I don’t think so! I’ll be honest.” JUDGE JUDY: “That’s special.” BANKER: We need help. This competition for deposits and loans, disintermediation, the cost of funds, narrowing margins, etc. are causing us serious problems. We need new sources of income. Our sacred cows of NSF charges, credit life and ATM charges are even coming under scrutiny. It’s just not fair. We want to work for our customers. We want to help them solve problems and capitalize on opportunities. Excellence in service and quality products, you know – value, is what we are all about. A few more points…” JUDGE JUDY: Stop already – I’ve
heard enough. I can understand self-promotion. I can respect an
attitude. But your last comments are not in touch with reality. You talk
about quality and value in the same breath with ATM fees, credit life and
NSF charges. Get a grip. The simple truth is that what you, the agent and stockbroker want, need and say is moot. Y’all are no longer in control – it’s over. For the limited time remaining the customer is going to talk. And as a matter of fact the only words that will matter in the future are those of the customers. Listen – you might learn. CUSTOMER REPRESENTATIVES: T. Ruth Seekur - Your honor, I’m a consumer representative. My name is T. Ruth Seekur. With me today are Mr. R. D. Nari and Ms. Dee Manding. We’ll be very brief. The world is being reshaped. As you said, “we’re in charge”. For most consumer goods, selection has improved, quality increased and prices have dropped. Banking, Insurance and Stockbrokers don’t want to see these changes. They want to sneak their Dinosaur products and services through the door of tomorrow. The good news – no the great news, is that the Internet has given us access to full information – control of our future. JUDGE JUDY: “Tell the truth, Ruth.” R. D. Nari – My story is simple. For 40 years, I was a “Joe Six pack” type guy. I worked and just got by. I didn’t know much about Full Financial Services, since I wasn’t rich. Then a year ago I won the lottery and now everyone wants me as a customer. When I was poor the tellers were nice to me and the agent sent me refrigerator magnets but products? Services? I don’t think so. Ms. Dee Manding – I have resources. I’m what most would call a “target” customer. Here’s my reality. My banker can handle all my transactions but if I don’t fit into their process, I’m in trouble. The stockbroker talks about relationship but we only talk when a transaction is made. You know if I want to buy or he wants to sell something. The agent is a problem solver. If I’ve got a dilemma that no one else will touch, she will work with me. Unfortunately if I just need an I.D. card for insurance, a policy delivered or a question answered, it might take weeks for her to respond. The process is to tell me it’s under control and blame the insurance company for the inefficiencies. T. Ruth Seekur – Let me address the future. This is what my clients want - to be asked about our wants and needs, innovation, efficient delivery and effective results. We will pay a fair price for excellent service. We don’t care about policies and products. We want our problems solved and assistance in capitalizing on opportunities. We want positive buying experiences. Like with other industries we want excellent service as a minimum standard and then we expect you to innovate to assure a future of better, simpler and cheaper products and services. We want hassle removed or reduced in our lives. We want a relationship with someone that will use the internet, technology and any other tool available to help us – not themselves. We want new – PEOs, legal and accounting services, coordination in telecommunication purchases, information, information and information. We don’t want to be sold. We want you to facilitate our buying. JUDGE JUDY: Excellent! Are you boys and girl listening. Did you hear what’s been said. Your future does not rest in this court. Your future is in the hands of the customer. If any of you will abandon your own special interest, long enough to reach out to the customers, you’ll do fine. If you continue to perpetuate your own self serving systems, the court of public opinion will find you guilty and your punishment will be severe – it will be capital punishment. Court adjourned.” Bailiff: “All rise.” DRAFT judgejudy Mike |